Under the scheme, MSMEs registered under the GST are eligible for loan up to RS 1 crore in just 59 minutes through ‘psbloansin59minutes.com’ portal.

State-run banks have given in-principle approval to 1.12 lakh loan applications of micro, small and medium enterprises, totalling Rs 37,412 crore, under the ‘59 minutes’ loan scheme, launched by Prime Minister Narendra Modi on November 2.

Minister of state for finance Shiv Pratap Shukla told the Lok Sabha that as of December 25, sanctions have been made in respect of 40,669 cases totalling loans of Rs 14,088.32 crore.

Under the scheme, MSMEs registered under the GST are eligible for loan up to RS 1 crore in just 59 minutes through ‘psbloansin59minutes.com’ portal.

MSMEs generate around 100 million jobs through 46 million units spread across the country. With a 38% contribution to the nation’s GDP and 40% and 45% share of the overall exports and manufacturing output, respectively, the sector plays a key role in the economy.

Besides the wide range of services provided by the sector, it is engaged in manufacturing of over 6000 products ranging from traditional to hi-tech items.

Separately, finance minister Arun Jaitley said action has been taken against as many as 6,049 officers of state-run banks last fiscal in cases of lapses that led to bad loans. The penalties include dismissal, compulsory retirement and demotion.